Part V8 HMRC Notices | Commentary

727 Retail schemes

Part V8 HMRC Notices | Commentary

Retail schemes

January 2020

This notice cancels and replaces Notice 727 (May 2012).

1 Overview

1.1 What this notice is about

This notice tells you about the retail schemes available to you if you're a VAT-registered business making retail sales and you are unable to account for VAT normal accounting.

It explains how to choose a scheme that best suits your business. It also provides information on matters common to all our schemes (for example, recording your Daily Gross Takings (DGT), or what to do if the VAT rate changes or if you cease using a retail scheme) and rules on special circumstances such as:


    •     catering supplies;


    •     retail supplies made by chemists;


    •     supplies made by florists.

The changes are – this notice has been updated for consistency with the other retail schemes notices.

Main narrative treatment—V3.551–V3.576.

1.2 Retail schemes

The retail schemes are simplification methods to use to arrive at the value of your taxable retail sales and to determine what proportion of those sales are taxable at the different rates of VAT.

A retail scheme cannot alter the VAT liability of a supply or the elements to a linked supply, it just provides a mechanism for calculating the VAT due.

Any changes to the liability must be agreed outside of the scheme.

For example, as a concession, where the minor article satisfies the criteria set out in Business promotions and VAT (Notice 700/7), you may account for VAT on the minor item at the same rate as the main article.

1.3 Individual schemes

This notice does not tell you in

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